Genex Services in sale process through Bank of America

By Olga Oksman and Soma Biswas

This article is provided to FT.com readers by mergermarket—a news service focused on providing actionable, origination intelligence to M&A professionals. www.mergermarket.com--------------------------------------------------------------------------------------------------------

Workers compensation case-management provider Genex Services is in a sale process, a source familiar with the situation and two industry bankers told mergermarket.

The Wayne, Pennsylvania-based company has EBITDA of USD 40m, the source and the first industry banker said. Bank of America has been mandated for the sale process, according to the source familiar. The sale process is in the early stages, with no first round bid deadline yet set, a third industry banker said.

Genex was acquired by Stone Point Capital for an undisclosed sum in 2007 from UnumProvident, now called Unum Group (NYSE:UNM), a worker’s compensation insurer. Genex had annual sales of USD 163.9m at that time, according to the statement announcing the deal.

Genex, Bank of America and Stone Point Capital could not be reached for comment.

Since being acquired by Stone Point the company has made a slew of acquisitions. In January 2011, it acquired Tampa, Florida-based Network Synergy Group. In December of 2010, Genex acquired Philadelphia, Pennsylvania-based Intracorp’s workers’ compensation and disability case management business from CIGNA. Genex paid CIGNA with its own stock, and CIGNA became a minority shareholder in Genex through that transaction. In October 2009, it acquired Sacramento, California-based Professional Diagnostics Management. Financial terms of the acquisitions were not disclosed.

Genex has 2,700 employees and 60 service locations in North America. The company was founded in 1978 and serves the insurance and third-party administrator markets. Genex provides its services to clients in the US, Puerto Rico and Canada.